NEW YORK--(BUSINESS WIRE)--GetSwift Limited (ASX: GSW) (‘GetSwift’ or the ‘Company’), today lodged its unaudited Appendix 4C Report for the period ending 31 March 2019.
Total revenue and other income for the quarter ending 31 March 2019 was approximately $1.085 million, an increase of 197 per cent on the equivalent quarter last year and an increase of 52 per cent from the preceding quarter ending 31 December 2018. On 20 February 2019, the Company announced two strategic SaaS acquisitions in North America: Delivery BIZ Pro and Scheduling+. Net loss after tax was approximately $6.7 million of which a significant amount had been allocated for technology staff growth and R&D platform enhancements for the quarter ending 31 March 2018.
Delivery BIZ Pro (“DBP”) is a subscription-based cloud service for businesses with recurring product orders particularly within the produce, meal-kit, farm-to-table, water, home and commercial delivery sectors. DBP’s platform brings together key components that allow recurring delivery industry sectors to employ the best methodology for their logistics fulfillment.
Scheduling+ (“SP”) combines staff scheduling, task management, time and attendance recordkeeping, and payroll into one easy to use subscription-based cloud solution, which allows businesses of all sizes to reduce the amount of time spent on employee management and optimise human capital management.
Given the transformation of the Company through these two acquisitions and enhanced product offerings, the Company believes that transactions are no longer a suitable representation of business activity for investors and customers. As such, the Company will not be providing transaction numbers going forward, and will instead report on revenue.
Integration of DBP and SP has progressed as planned. The Company continues to invest in technology and enterprise integrations, including new product development. The Company’s new software development centre in Denver, Colorado is progressing well with continued hires in the March quarter. In the quarter the Company also opened a new tech development campus in Europe to meet client growth needs.
On 17 April 2019, the High Court of Australia dismissed an application for special leave to appeal the decision of the Full Court of the Federal Court of Australia. As previously advised, the decision of the Full Court of the Federal Court that only one of three competing class actions filed against the Company could continue, was subject to an application for special leave to appeal to the High Court of Australia. The Company resisted the application and pressed for a determination that only one class action proceed. As a result of the High Court’s decision, the judgment of the Full Court is now final and only one class action will continue against the Company: the Webb class action. The Webb class action has been proceeding in the interim and the trial of the matter is now scheduled to commence on a date not before 17 August 2020. In dismissing the application for leave, the High Court ordered the costs against the party bringing the application, meaning the Company will recover some of the costs associated with the application for leave.
Separately, the Company advised in February this year that the Australian Securities and Investments Commission (ASIC) commenced civil penalty proceedings against the Company and two of its directors. ASIC have since added allegations against Mr Brett Eagle, a former director and General Counsel of the Company. The trial of the ASIC proceedings is now scheduled to commence in June 2020.
As previously advised, The Company strongly disputes the allegations made in both the Webb class action and the ASIC proceeding, including any alleged loss, and is vigorously defending the proceedings. The Company will continue to keep shareholders informed of any relevant developments.
Administration and Corporate Costs continued to be significant cash expenditures due to legal costs and increased governance expenses. These expenses include the aforementioned costs for defending proceedings before the Federal Court of Australia and the ASIC proceeding. Administrative and Corporates Costs will be higher in the June fiscal quarter due to these recent corporate events. The Company has and will continue to vigorously defend these proceedings, and will continue to robustly pursue all legal options to protect shareholder interests.
The Company has a strong balance sheet, with the quarter ending 31 March 2019 holding substantial liquidity with cash, cash equivalents, and bank term deposits of $74.4 million and no outstanding debt.
David Ryan, Belinda Gibson, and Michael Fricklas have decided to step down from the Board effective 26 April 2019.
Michael Fricklas said on behalf of Belinda Gibson, David Ryan, and himself, “As members of the Board of GetSwift, we are proud of how the Company has matured over the past year. The Company’s products are achieving success in the market and it has many accomplishments.” Mr. Fricklas also said, “Nonetheless, we have different views as to the manner in which the Company engages with its Board, and in light of this, have decided to resign. We are all shareholders ourselves and we hope the Company has great success in the future.”
The Company is very grateful for their service and contributions over the last twelve months particularly in the area of improving the Company’s corporate governance and reporting structures. The Company is in a stronger position as result of their contributions and those governance enhancements remain intact.
Consistent with the Company’s focus on growth and scaling the business to meet global demand including the recent addition of Independent Non-Executive Director, Marc Naidoo to the Board, the Company intends to shortly appoint at least two new Independent Non-Executive Directors to the Board. Importantly, once these new appointments take effect, the Board will continue to have a majority of independent directors and remain diverse.
The Company feels that it is appropriate to shift toward Directors with significant experience generating revenues and scaling commercial operations for growth. The Company has already identified several strong candidates that meet these requirements.
The Company’s goal remains to have best-in-class governance and seasoned business leaders with commercial experience to help the Company rapidly expand its growth and take advantage of global opportunities. The Company and management are committed to continuing to act in the best interest of shareholders to create long-term shareholder value.
The company will now focus on a new phase of its development with major focuses on scaling both revenues and technology development efforts whilst corporate governance continues to be enforced.
Investor Conference Call
The Company will host a shareholder call following the announcement of the new Independent Non-Executive Directors.
About GetSwift Limited
Technology to Optimise Global Delivery Logistics
GetSwift is a worldwide leader in delivery management automation. From enterprise to hyper-local, businesses across dozens of industries around the globe depend on GetSwift’s SaaS platform to bring visibility, accountability, efficiency and savings to their supply chain and “Last Mile" operations. GetSwift is headquartered in New York City and is listed on the Australian Securities Exchange (ASX:GSW). For further background, please visit GetSwift.co.